This paper investigates the relationship between bank capital and lending in the Brazilian market from 2003 to 2012, by adapting the methodology used by Berrospide and Edge (2010). Initially, we estimate a long-term target capital, actively managed by each bank, and then we compute the banks' capital surpluses. In a second step, we investigate whether this capital surplus is related to the change in non-earmarked credit using panel data regressions. The results show a positive relationship between the change in loans and the capital surplus, stronger in the second part of the sample period (after September/2008), but yet economically modest, contradicting the assumption of constant leverage. Similar results are obtained using direct observable accounting indicators of bank capital. There is no significant relationship between capital and credit growth in governmental banks.

Consumer Credit Market Outlook

The global consumer credit market size is projected to grow significantly from USD 12 trillion in 2023 to USD 18.85 trillion by 2032, with a compound annual growth rate (CAGR) of 5.2% during the forecast period. The primary growth drivers include increasing consumer spending, rising disposable income, and the expansion of financial services into emerging markets. Consumer credit has become an integral part of modern economies, enabling individuals and businesses to manage cash flow, finance large purchases, and invest in the future.

A key factor propelling the growth of the consumer credit market is the increasing confidence in financial institutions and credit mechanisms globally. As financial literacy improves, more people understand the benefits and risks associated with various forms of credit, leading to higher adoption rates. Additionally, technological advancements have streamlined credit approval processes, making them more efficient and accessible. Digital platforms allow for quicker credit evaluations and disbursements, which further accelerates market growth by providing consumers with timely access to funds.

Another significant growth factor is the burgeoning e-commerce sector, which has driven the demand for consumer credit. The convenience of online shopping has led to increased use of credit cards and other digital credit facilities. Retailers often partner with financial institutions to offer attractive financing options, driving consumer credit usage. Moreover, the rise of buy now, pay later (BNPL) services has revolutionized consumer purchasing behavior by providing flexible payment options, thereby boosting the overall demand for consumer credit.

Additionally, demographic changes such as urbanization and a growing middle class in emerging economies are contributing to market expansion. A younger population inclined towards borrowing for various needs, from education to home ownership, is driving the demand for consumer credit. Financial institutions are tapping into this demographic by offering tailored credit products, which leads to higher market penetration. Furthermore, favorable government policies and regulatory frameworks that encourage responsible borrowing and lending practices are creating a conducive environment for market growth.

The rise of Internet Consumer Loan platforms has further revolutionized the consumer credit landscape. These platforms offer borrowers the convenience of applying for loans online, often with faster approval times and competitive interest rates. By leveraging advanced algorithms and data analytics, Internet Consumer Loan providers can assess creditworthiness more efficiently, making credit accessible to a wider audience. This digital transformation aligns with the increasing consumer preference for online financial services, driven by the growing penetration of smartphones and internet connectivity. As more consumers turn to these platforms for their borrowing needs, traditional financial institutions are also adapting by enhancing their online offerings to remain competitive in this evolving market.

Regionally, North America and Europe continue to dominate the consumer credit market, owing to well-established financial infrastructures and high consumer awareness. However, the Asia Pacific region is emerging as a lucrative market due to rapid economic growth, increased consumer spending, and the proliferation of digital finance solutions. Latin America and the Middle East & Africa also present significant growth opportunities as financial inclusion initiatives gain momentum and credit products become more accessible to a broader population.

Type Analysis

The consumer credit market can be segmented by type into revolving credit and non-revolving credit. Revolving credit, which includes credit cards and lines of credit, allows consumers to borrow up to a certain limit and repay either in full or through minimum monthly payments. This type of credit is highly flexible and convenient for consumers, leading to its widespread adoption. The integration of rewards programs and cashback offers by credit card companies further incentivizes usage, thereby boosting the revolving credit segment.

Non-revolving credit, on the other hand, includes loans that are disbursed in a lump sum and repaid over a fixed term, such as auto loans, student loans, and mortgages. This segment is characterized by lower interest rates compared to

Domestic credit to private sector by banks (% of GDP) in Vietnam was reported at 125 % in 2022, according to the World Bank collection of development indicators, compiled from officially recognized sources. Vietnam - Domestic credit to private sector by banks (% of GDP) - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

Domestic credit to private sector by banks (% of GDP) in India was reported at 50.14 % in 2021, according to the World Bank collection of development indicators, compiled from officially recognized sources. India - Domestic credit to private sector by banks (% of GDP) - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

Credit Analysis Software Market Outlook

The global credit analysis software market size was valued at approximately USD 3.5 billion in 2023 and is forecasted to reach around USD 7.2 billion by 2032, growing at a CAGR of 8.2% during the forecast period. This growth is driven by the increasing need for efficient credit risk management solutions across various financial institutions. The burgeoning demand for automation in credit assessment procedures and the growing adoption of advanced analytics and artificial intelligence in credit analysis are key factors contributing to the market's expansion.

Several factors are propelling the growth of the credit analysis software market. Firstly, the increasing complexity of financial transactions and the growing volume of credit applications have necessitated the adoption of automated credit analysis systems. These systems enhance the accuracy and efficiency of credit risk assessment, thereby reducing the likelihood of defaults. Additionally, the integration of artificial intelligence, machine learning, and big data analytics in credit analysis software allows for more nuanced analysis, enabling financial institutions to make more informed lending decisions.

Moreover, regulatory requirements and compliance standards have become more stringent, compelling financial institutions to adopt robust credit analysis solutions. Regulations like Basel III and the Dodd-Frank Act mandate higher levels of transparency and risk management, which can be effectively achieved through advanced credit analysis software. This regulatory push is a significant growth driver for the market, as institutions strive to meet compliance standards while maintaining operational efficiency.

Another critical growth factor is the increasing digital transformation in the banking and financial sector. The shift towards digital banking and fintech innovations is fostering the adoption of credit analysis software. Digital platforms offer seamless integration with various financial products and services, enhancing the overall customer experience. As financial institutions continue to digitize their operations, the demand for sophisticated credit analysis tools is expected to rise, further driving market growth.

In this evolving landscape, the role of a Lending Analytics Solution becomes increasingly significant. Such solutions are designed to streamline the lending process by providing comprehensive insights into borrower behavior and creditworthiness. By leveraging data analytics, financial institutions can enhance their decision-making processes, reduce risks, and improve customer satisfaction. The integration of a Lending Analytics Solution can also lead to more personalized lending experiences, as it allows institutions to tailor their offerings based on detailed customer profiles and predictive analytics. This not only helps in mitigating risks but also in identifying new opportunities for growth and expansion in the lending market.

Regionally, North America holds a significant share in the credit analysis software market, driven by the strong presence of major financial institutions and technological advancements in the region. Europe follows closely, with a growing emphasis on regulatory compliance and risk management. Asia Pacific is anticipated to witness the highest growth rate, fueled by the rapid economic development, increasing digitalization, and the expanding banking sector in countries like China and India. Latin America and the Middle East & Africa are also expected to contribute to the market's growth, albeit at a slower pace, as they gradually adopt advanced credit analysis solutions.

Component Analysis

The credit analysis software market, when segmented by component, can be broadly categorized into software and services. The software segment encompasses a range of solutions, including on-premises and cloud-based platforms, designed to automate and enhance the credit analysis process. This segment is experiencing substantial growth due to the increasing reliance on digital tools for credit risk assessment and management. Advanced software solutions offer a plethora of features, such as real-time data analytics, automated report generation, and predictive modeling, which significantly improve the efficiency and accuracy of credit analysis.

Within the software segment, cloud-based solutions are gaining immense popularity due to their scalability, flexibility, and cos

Domestic credit to private sector by banks (% of GDP) in Pakistan was reported at 11.34 % in 2024, according to the World Bank collection of development indicators, compiled from officially recognized sources. Pakistan - Domestic credit to private sector by banks (% of GDP) - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

Credit Risk Database Market size was valued at USD 7.31 Billion in 2023 and is projected to reach USD 18.43 Billion by 2031, growing at a CAGR of 14.2% during the forecast period 2024-2031.

Global Credit Risk Database Market Drivers

Regulatory Compliance: Stringent regulations imposed by financial authorities and government bodies require financial institutions to assess and manage credit risks effectively. Compliance with regulations such as Basel III, Dodd-Frank Act, and Anti-Money Laundering (AML) guidelines increases demand for comprehensive credit risk databases. Increasing Loan Origination: With the rise in consumer spending and economic recovery, the demand for loans from individuals and businesses has increased. This growth in loan origination necessitates robust credit risk assessment tools, driving the need for effective credit risk databases.

Global Credit Risk Database Market Restraints

Regulatory Compliance: Stringent regulations surrounding data privacy, banking, and finance can limit the ways in which companies collect, store, and utilize credit risk data. Compliance with regulations such as GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act) can impose significant operational burdens. Data Security Concerns: The sensitive nature of credit risk data makes it a target for cyberattacks. Companies must invest heavily in cybersecurity measures to protect against breaches, which can be a financial burden and deter some firms from entering or expanding in the market.

Credit to government and state-owned enterprises to GDP (%) in Brunei was reported at 4.8155 % in 2020, according to the World Bank collection of development indicators, compiled from officially recognized sources. Brunei - Credit to government and state owned enterprises to GDP - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

Domestic credit to private sector (% of GDP) in Samoa was reported at 77 % in 2024, according to the World Bank collection of development indicators, compiled from officially recognized sources. Samoa - Domestic credit to private sector (% of GDP) - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

Domestic credit to private sector (% of GDP) in Guyana was reported at 14.85 % in 2024, according to the World Bank collection of development indicators, compiled from officially recognized sources. Guyana - Domestic credit to private sector (% of GDP) - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

Domestic credit to private sector by banks (% of GDP) in Cambodia was reported at 125 % in 2024, according to the World Bank collection of development indicators, compiled from officially recognized sources. Cambodia - Domestic credit to private sector by banks (% of GDP) - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

The U.S. bank prime loan rate has undergone significant fluctuations over the past three decades, reflecting broader economic trends and monetary policy decisions. From a high of **** percent in 1990, the rate has seen periods of decline, stability, and recent increases. As of May 2025, the prime rate stood at *** percent, marking a notable rise from the historic lows seen in the early 2020s. Federal Reserve's impact on lending rates The prime rate's trajectory closely mirrors changes in the federal funds rate, which serves as a key benchmark for the U.S. financial system. In 2023, the Federal Reserve implemented a series of rate hikes, pushing the federal funds target range to 5.25-5.5 percent by year-end. This aggressive monetary tightening was aimed at combating rising inflation, and its effects rippled through various lending rates, including the prime rate. Long-term investment outlook While short-term rates have risen, long-term investment yields have also seen changes. The 10-year U.S. Treasury bond, a benchmark for long-term interest rates, showed an average market yield of **** percent in the second quarter of 2024, adjusted for constant maturity and inflation. This figure represents a recovery from negative real returns seen in 2021, reflecting shifting expectations for economic growth and inflation. The evolving yield environment has implications for both borrowers and investors, influencing decisions across the financial landscape.

The global credit card issuance services market is projected to expand rapidly, from USD 674.52 million in 2025 to USD 1,729.05 million by 2033, exhibiting a CAGR of 8.1% during the forecast period (2025-2033). The rising adoption of digital payments, increasing consumer spending, and growing popularity of e-commerce are the key drivers fueling market growth. The market is segmented based on card type, issuing channel, technology, and target market. Among card types, credit cards hold the largest market share due to their widespread acceptance and convenience. Prepaid cards are also gaining popularity, particularly for online payments and cross-border transactions. In terms of issuing channels, banks remain the dominant players, but non-banking financial institutions (NBFIs) and fintechs are gaining traction. Contactless payments and mobile payments are the leading technologies driving growth, with chip-based cards also gaining traction. The market is further segmented into individuals, businesses, and government agencies, with individuals being the largest target market segment. Key drivers for this market are: Growth in e-commerce.Adoption of mobile payments.Increased demand for customized credit card offerings.Emerging markets expansion.Rise of digital wallets.. Potential restraints include: A rise in digital payments.Growing adoption of mobile banking.Increase in e-commerce transactions.Expansion of contactless payments.Intensifying competition from fintech companies..

Credit Risk Database Market Outlook

The global credit risk database market size was valued at USD 2.8 billion in 2023 and is expected to reach USD 5.6 billion by 2032, growing at a CAGR of 7.8% during the forecast period. The growth of this market can be attributed to increasing regulatory requirements for risk management, advancements in data analytics, and the rising need for efficient credit risk assessment tools across various industries. With financial institutions and enterprises focusing more on mitigating risks and ensuring robust financial health, the demand for comprehensive credit risk databases is poised to rise significantly.

One of the primary growth factors driving the credit risk database market is the increasing regulatory scrutiny across the globe. Financial institutions are under immense pressure to comply with stringent regulations such as Basel III in banking, which necessitates robust risk assessment and management frameworks. These regulations mandate institutions to maintain adequate capital reserves and to perform comprehensive risk evaluations, thereby driving the demand for advanced credit risk databases. Such tools provide crucial insights that help in identifying potential defaults and enabling proactive risk mitigation strategies.

Technological advancements, particularly in the realms of big data and artificial intelligence, are significantly contributing to the market's growth. Modern credit risk databases leverage AI and machine learning algorithms to analyze vast datasets in real-time, providing more accurate and timely risk assessments. By utilizing predictive analytics, these databases can forecast potential credit risks and financial distress, which allows companies to take preemptive measures. The integration of such advanced technologies is expected to propel market growth further as businesses increasingly adopt these solutions for enhanced decision-making processes.

Moreover, the growing digitization and the proliferation of digital financial services have elevated the importance of efficient credit risk management tools. As financial transactions increasingly shift online, the volume of data generated has surged, necessitating more sophisticated analysis tools to manage credit risk. This trend is especially prominent in emerging economies where digital banking and fintech services are rapidly expanding. The ability to process and analyze vast amounts of data accurately and quickly is becoming indispensable, further driving the adoption of credit risk databases.

Credit Rating Software plays a pivotal role in the landscape of credit risk databases by providing essential tools that enhance the accuracy and efficiency of credit assessments. These software solutions integrate seamlessly with credit risk databases, offering advanced analytics and real-time data processing capabilities. By leveraging sophisticated algorithms and data models, credit rating software enables organizations to evaluate creditworthiness with greater precision, thereby reducing the likelihood of defaults. The integration of credit rating software into existing systems not only streamlines the risk assessment process but also supports compliance with regulatory requirements, making it an indispensable component for financial institutions and enterprises aiming to maintain robust credit risk management frameworks.

From a regional perspective, North America is expected to hold the largest market share due to the early adoption of advanced technologies and stringent regulatory frameworks. The presence of major market players and a well-established financial sector also contribute to the region's dominance. However, the Asia Pacific region is anticipated to witness the fastest growth, driven by the rapid expansion of the financial sector, increasing regulatory requirements, and growing awareness about the benefits of credit risk databases. This region's burgeoning economies, such as China and India, offer lucrative opportunities for market players.

Component Analysis

The credit risk database market by component is segmented into software and services. The software segment includes platforms and applications that provide credit risk assessment and management functionalities. These software solutions are equipped with advanced analytics tools and machine learning algorithms to facilitate real-time risk analysis and decision-making. The rising demand for integrated software solutions that offer seamless data integration and com

New to VIC, EQB Inc (TSX: EQB) is a financial services company and digital bank servicing nearly 700,000 customers as of October 31, 2024, with $127bn of assets under management and administration, $47bn of on balance sheet loans, and $67bn of total loans under management (includes derecognized loans from securitization). EQB is Canada’s 7th largest bank, and is a high quality bank: It boasts a 10-year average PCL of 4bps, well below the Big 6/Domestically Systematically Important Banks (DSIB) average of 30bps. It also targets, and historically has achieved, leading ROEs (target at 15-17% adjusted), and has seen significantly faster growth than peers (10-year EPS CAGR 12% vs DSIB average of 6.5%). Lastly, it is very well capitalized, with a leading CET1 ratio of 14.3%.Is Apple a good investment?Apple Cost of EquityApple Cost of DebtHow to Invest in OpenAIHow to Invest in SpaceXHistorical TSR performance has been strong, indicating that the market acknowledges the above points: 10-year total return of 286% vs S&P/TSX Total Capped Financials Index at 166%. However, we believe that even under conservative growth assumptions, EQB remains ~40% undervalued, and is an attractive long term compounder. Our arguments touch primarily on the following points:Recent credit quality headwinds will prove temporary, and aggregate portfolio quality remains very robustDespite higher concentration relative to peers, EQB’s end-markets are attractive in the long-term and strong loan growth is sustainableRegulatory change awaiting OSFI approval for EQB to move from Standardized to Advanced Internal Rating-Based (AIRB) modelling will substantially increase CET1 ratios, further increasing excess capital available for distribution/deployment Business Overview:Plenty of banks (and digital banks with similar lower efficiency ratio benefits) have already been written about on VIC, so we will focus here instead on what makes EQB different:Mainly, EQB is concentrated. Whereas peers see diversification across several dimensions, including revenue source, funding, and loan portfolio, EQB tends to be concentrated across all of these areas. We will go deeper into why we believe this isn’t necessarily an issue from a long-term perspective given the end markets EQB is exposed to, but for now, the quick facts are:Revenue mix: EQB has only recently started pushing into expanding into non-interest revenue sources, acquiring Concentra Bank in 2022, which through its subsidiary Concentra Trust allows EQB to offer fiduciary/trustee services. EQB then acquired 75% of ACM Advisors Ltd. (ACM) in 2023, which provides wealth management services. While exposure to fee-based revenue is guided to continue to see strong growth with ACM performing above expectations, EQB’s non-interest revenue as a % of total revenue is only 16.3% as of FY2024, vs DSIB peers at ~50% average. Fees and other income is currently only 6.5%.Funding profile: Term deposits make up 80% of EQB’s funding sources, while demand deposits make up the remainder. Within term deposits, brokered term deposits comprise ~60% of deposit balance, while EQB’s digital bank subsidiary EQ Bank comprises ~20%. Within demand deposits, EQ Bank comprises ~65%. While higher exposure to term and brokered deposits raises funding costs, EQB maintains this funding profile to meet its core strategy of closer maturity matching to reduce interest rate and liquidity risk. This results in a one-year equity duration, and stable NIMs amidst changing interest rates. It is noteworthy that EQB has been moving away from higher-cost brokered deposits to lower cost deposits sourced from EQ Bank. In 2019, 93% of deposits were brokered vs 51% now, and just 4% were from EQ Bank vs 27% now. Economic Value of Shareholder’s Equity (EVE) sensitivity to a 100bps increase in interest rates is just -1.1%, and NI increases by just $333k. We see this as a benefit given current uncertainties surrounding Canadian macroeconomic conditions.Loan portfolio: Before touching shortly on why we believe EQB’s lending end markets are attractive in the long-term, we first note here that EQB is nonetheless highly concentrated in its lending strategy. EQB is primarily focused on residential lending: 62% of loans are residential (single-family) mortgages, 32% are commercial loans, and just 6% are personal loans (excluding single-family mo

More than half of private equity funds worldwide targeted North America in 2021. The value of private equity funds focused on North America reached ***** billion U.S. dollars. Dry powder reached an all-time high in 2020, which means that private equity companies have committed to invest record high levels of capital, but have not yet allocated it.

In May 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In early 2025, Russia maintained the highest interest rate at 20 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at -0.1 percent in May 2025. In contrast, Russia maintained a high inflation rate of 9.9 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

Carbon-Mineral Credit Market Outlook

According to our latest research, the global carbon-mineral credit market size stood at USD 1.82 billion in 2024, with a robust compound annual growth rate (CAGR) of 23.5% projected from 2025 to 2033. This remarkable growth is propelled by the increasing urgency to achieve net-zero emissions, stricter environmental regulations, and the rising adoption of innovative carbon removal and mineralization technologies. By 2033, the market is forecasted to reach a substantial USD 14.9 billion, reflecting the accelerating integration of carbon-mineral credits into global sustainability and decarbonization strategies as per our latest research findings.

The primary growth factor for the carbon-mineral credit market is the intensifying global focus on climate change mitigation and the transition towards a low-carbon economy. Governments and international organizations are setting ambitious targets for carbon neutrality, which has significantly boosted demand for effective and verifiable carbon offset solutions. Carbon-mineral credits, which are generated through mineralization processes that permanently lock atmospheric carbon dioxide into stable mineral forms, are increasingly recognized as a credible and durable carbon sequestration method. This recognition is driving both voluntary and compliance carbon markets to incorporate carbon-mineral credits into their portfolios, further stimulating market expansion.

Technological advancements are another key catalyst fueling the growth of the carbon-mineral credit market. Innovations in direct air capture, enhanced weathering, and mineralization processes have improved the scalability, cost-efficiency, and permanence of carbon removal projects. These advancements have enabled project developers to generate higher-quality credits that meet stringent verification standards required by both regulatory authorities and voluntary buyers. Furthermore, the integration of digital monitoring, reporting, and verification (MRV) systems has enhanced transparency and traceability, making carbon-mineral credits more attractive to corporations seeking to offset their emissions and meet sustainability commitments.

The rising participation of the private sector, particularly large multinational corporations, is further accelerating the market’s growth. Many companies are setting science-based targets and investing in carbon-mineral credit projects to fulfill their environmental, social, and governance (ESG) obligations. Financial institutions and impact investors are also channeling capital into mineralization initiatives, incentivized by the dual benefits of climate impact and long-term asset value. This influx of private investment is not only expanding the scale of existing projects but also fostering the development of new project types and methodologies, thereby broadening the market’s scope and potential.

From a regional perspective, North America and Europe currently dominate the carbon-mineral credit market, driven by advanced technological infrastructure, supportive regulatory frameworks, and strong corporate demand for high-integrity credits. The Asia Pacific region is emerging as a high-growth market, spurred by rapid industrialization, increasing environmental awareness, and government initiatives to promote carbon neutrality. Meanwhile, Latin America and the Middle East & Africa are gradually integrating carbon-mineral credits into their climate strategies, leveraging abundant mineral resources and international climate finance to catalyze project development. This evolving regional landscape underscores the global relevance and scalability of the carbon-mineral credit market.

Credit Type Analysis

The carbon-mineral credit market is segmented by credit type into carbon credits, mineral credits, and hybrid credits, each playing a distinct role in the broader ecosystem of climate mitigation solutions. Carbon credits, generated through processes such as direct air capture

Domestic credit to private sector (% of GDP) in China was reported at 194 % in 2024, according to the World Bank collection of development indicators, compiled from officially recognized sources. China - Domestic credit to private sector (% of GDP) - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.